Skip to comments.Obama Tax Hikes On Rich Would Shrink Economy, Jobs
Posted on 11/15/2012 6:50:39 AM PST by SeekAndFind
President Obama's proposed tax hike on the top 2% of incomes will do next to nothing to close our chronic budget deficits, now running more than $1 trillion a year.
But it will have a major impact on one struggling part of our economy: small business.
In his Wednesday press conference, just before meeting with representatives of the nation's largest businesses, the president again claimed his plan to reduce the deficit and avoid the fiscal cliff would mean that "97% of small businesses are not going to see their taxes go up."
But this is, to put it politely, deceptive. By jacking up taxes on the most successful 3% of small businesses, Obama will destroy hundreds of thousands of jobs, shrink U.S. output and force companies to raise prices. As usual, the data tell the story.
America has some 34.8 million small businesses, according to a recent Treasury Department study. Sounds like a lot, until you consider that 30 million of them employ no one other than the owner.
Of the remaining 4.8 million that do employ workers, 1.2 million have incomes above $200,000 where Obama's tax hikes kick in.
Here's the rub: Those 1.2 million small businesses that will be hit by Obama's small-business tax are the nation's most prolific job creators, accounting for 54% of all private-sector positions or 77.6 million in all.
And while they make up just 3% of all small businesses, they earn 91% or $341 billion of all profits reported by the small businesses with workers. "They are the most successful and therefore the biggest job creators," as the Heritage Foundation recently pointed out.
They also pay 44% of all federal business taxes.
Yet, the president's talking point about his tax increases affecting only "the rich"
(Excerpt) Read more at news.investors.com ...
Wall Street and the hundreds of thousands laid off since Nov 6th know this all too well.
Everyone knows this... for Obama and the minions who support him, economic crisis is the intended result.
“But, but, at least their slice of the pie will be smaller! Take that, you rich SOBs!”, scream the 0bama voters.....
The taxes on the 2% will do harm to everyone where does he get his numbers from?.
He’s past the point of just being stupid now it’s a matter of 100% socialism or let the country fall.